Major luxury products group LVMH has reported stable sales in fourth quarter 2008 in contrast to its competitors who saw a marked downturn at the end of last year. LVMH achieved a rise of 4% in Q4, or 0.1% in terms of comparable exchange rates to €5.2bn. Sales for the full year rose 7% to €17.2bn, in line with forecasts.
This was the weakest growth for five years. Net profits were stable at €2.3bn while operating earnings increased 6% to €3.6bn. Growth last year was helped by the strong performances of the cosmetics sectors of the group, namely Dior and Sephora, together with the Louis Vuitton subsidiary.
Société Générale meanwhile has noted generally that investors no longer know what to expect after the publication of results from a number of luxury products companies including Elisabeth Arden and Estée Lauder together with Richemont, Tiffany and Remy Cointreau. The world market in luxury products, including cosmetics, now estimated to be worth €175bn, is set for its first recession in six years, according to the analysts of Bain & Co who are forecasting a downturn in sales of 7% to 10%.